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GST revenue neutral rate structure to be decided in Nov

Dismissing criticisms, he said the rate structure has been prepared based on a very practical basis

Policy Pulse
Publish Date: Oct 26 2016 12:31PM | Updated Date: Oct 26 2016 2:37PM

GST revenue neutral rate structure to be decided in Nov

Economic Affairs Secretary Shaktikanta Das asserted that the government is determined to implement GST from the next fiscal. He expressed confidence that the revenue neutral rate structure will be decided by next month.

 

"A lot of discussion going on at the moment with the GST Council and also in the public domain over the rate structure and it will get resolved in next meeting of GST Council in the first week of November. Maybe in one or two sittings, it will conclude,” said Das.

 

Dismissing criticisms, he said the rate structure has been prepared based on a very practical basis. "The rate has to be necessarily revenue neutral. You cannot have a rate structure where governments run into huge deficit.”

 

“Therefore, GST rates are worked out in such a manner that bulk of commodities are under the standard rate, which is 18 per cent," he said.

 

The items which are very important, which are of use to a large cross-section of people and common man are pegged at 6 per cent, he said, adding that 6 per cent, 12 per cent, 18 per cent and a higher rate for demerit goods has been proposed.

 

Earlier this month, the Centre and states failed to decide the tax rate under the GST regime even though they converged towards a consensus on levying a cess in addition to the highest rate of tax on luxury and sin goods.